Unit Test Answers

When it spends money on education, a government is trying to

If expansionary taxation policies are left unchecked, which is the most likely result?

What is the role of the three questions of economics?

A regulatory agency that attempts to limit risk in the banking system is

President Roslin of Country XYZ knows that a new policy is needed to help solve the problem of rising unemployment in her nation. Her next step is to

Which are affected by the factors of production? Choose three answers.the demand of the itemthe availability of the itemthe cost of the itemthe quality of the itemthe popularity of the item

The graph shows a point of equilibrium.What is the price at which equilibrium is achieved?

Demand-pull inflation occurs when

When does government regulate producers in a mixed-market economy?

Aggregate supply is best described as the

What are the two steps a producer can take to gain an absolute advantage?Produce more goods.Use high-quality resources.Produce more expensive goods.Use fewer resources.Produce high-quality goods.Use local resources.

Corporate taxes are a type of

Gross domestic product (GDP) is the value of goods and services produced in a country annually. It can best be described as measuring an economy’s

Jacob is considering buying a new car. Which nonrenewable resource should influence the decision?

What do the indicators used by economists reveal?

Which occurs during disequilibrium? Check all that apply.Supply and demand meet.Supply is less than demand.Supply and demand set prices.Supply is greater than demand.Supply and demand set production.

The Fed may respond to a recession by

Banks that offer low interest rates to people with good credit

Which best describes an opportunity cost?

When the government injects money into the economy, consumers may have more disposable income, which may lead to